Premier Oil’s shares rebound after it cools market fears

Premier Oil soared as much as 85pc yesterday, recouping some of its losses from the slump in crude prices. The North Sea-focused oil titan eased investor concerns by detailing a series of measures in response to the price collapse.

It noted that about 30pc of production this year is hedged at $60 and that 40pc of oil production for the first half of 2020 is hedged at $64 per barrel. Premier added that it “retains significant liquidity” with $135m of unrestricted cash and $330m of undrawn facilities.

Stifel called the trading statement a “comfortable” current liquidity position and production guidance. Premier shares closed 3.4p higher at 16p, a rise of 27pc.

Elsewhere, payment firm Finablr was among the biggest risers, surging 158pc, after cratering nearly 80pc on Thursday as it revealed it was “currently taking urgent steps to assess accurately its liquidity and cash-flow position”.

The company, which owns foreign exchange operator Travelex, has been hit with a string of challenges, including a hacking attack which took it offline for weeks and a coronavirus slump in demand. The pandemic has reduced the number of people travelling and restricted its ability to move bank notes between locations. It closed 7.1p higher at 11.6p.

On a day where European stocks made a modest recovery, as Germany and the European Commission pledged more spending in an attempt to combat the effects of the spreading coronavirus, miners were among those leading the charge. BHP and Rio Tinto soared 12pc and 10pc respectively, while Anglo

American and Antofagasta followed closely behind with a rise of 8pc and 6pc.

Global travel firms, leisure companies and events operators continued to suffer yesterday as health concerns refused to let up.

Shares at Cineworld tumbled by more than a third as the world’s secondlargest cinema operator faces its own cliffhanger.

The FTSE 250 company warned investors on Thursday that it will lose up to three months’ revenue if forced to shut most screens as part of efforts to contain the outbreak.

Although it confirmed it had not yet suffered any significant hit to trading from Covid-19, the chain admitted it would be plunged into uncertainty which could cast doubt over its ability to carry on operating.

Analysts at Peel Hunt said that the company’s update lacked detail, shedding “little light on the key issues”.

“If we understood the detail of Cineworld’s financing, we could be confident in its ability to trade through the coronavirus without requiring additional financing,” it said in a note. “Similarly, if we knew that the Cineplex acquisition would not proceed, we would be more positive.” Shares ended 22.8p, or 34pc, lower at 44.2p.

Meanwhile, the pound had its worst week since the aftermath of the Brexit referendum, falling 3.5pc, the most since October 2016.